According to court filings, it has been revealed that Fahrenheit, a cryptocurrency consortium, has emerged as the successful bidder that would be acquiring the assets of Celsius Network, the insolvent crypto lender. The acquisition involves assets that were previously valued at a sum of $2 billion. The court filings, which were submitted on the 25th of May, also show that the consortium will be obtaining the institutional loan portfolio, staked cryptocurrencies, several mining units, and other investments of the now-defunct crypto lender.
The group also has to make a $10 million deposit within three days in order to finalize the agreement. After a lengthy process of auction, the consortium of buyers that comprises Arrington Capital and US Bitcoin Corp was chosen as the successful bidder. The backup position was secured by the Blockchain Recovery Investment Consortium which includes Van Eck Absolute Return Advisers Corp, and GXD Labs.
Fahrenheit Has Outbid Others To Secure Celsius Assets
According to the agreement, Fahrenheit will be receiving a substantial amount of liquid cryptocurrency, which has been estimated to be between $450 million and $500 million, The US Bitcoin Corp will also create several crypto mining facilities, which would also include a megawatt plant that would be state of the art.
With the defunct company and its creditors accepting the bid, the regulatory approval is still out there to complete the acquisition. Martin Glenn, the bankruptcy court judge had previously stated that there could be regulatory roadblocks that would impede the sale of Celsius.
In the next few weeks, Celsius will be intending to negotiate and file a plan sponsor agreement with Fahrenheit, a revised Chapter 11 plan, a backup plan sponsor agreement with BRIC, and a disclosure statement.